Do you pay for what you can get for free? Dutch company TomTom, which produces navigation equipment, is looking for an answer to this question. Why should people buy a navigation device to get the map and navigation service they can get for free with the services provided by Google and Nokia?
The first brand that comes to mind when it comes to navigation, TomTom made a profit of 52 million euros in the last quarter of 2010 with a 29% decrease. The company estimates that its profit will decrease by at least 10 – 15% this year. Google and Nokia’s consecutive free and smartphone-based navigation solutions over the past year have delighted the consumers and navigation systems have found their place as an important reason for choosing smartphones. People rightly gave up buying only a tool to perform this task for such a service.
With TomTom, it will face the realities of the sector and start investing in corporate sales. According to CEO Harold Goddjin’s statement, the company will tend to negotiate with the car companies for the navigation devices that have started to be located in cars in the future. Goddjin also said that the company will grow to 0 in 2011, 2012 and hopes that this will improve in 2013.
News like this and this shows how convergence and the culture of convergence are imbued. In the light of technological developments in the near future, it is no longer fictitious to say that the concepts of economy, society, business and business will be redefined.